5. Sky High Company has two departments, X and Y. The following estimates are for the coming year: X Y Direct manufacturing labor-hours 20,000 30,000 Machine-hours 30,000 20,000 Manufacturing overhead $300,000 $330,000

The budgeted indirect-cost driver rate for Y based on the number of machine-hours is in excess of X by ________. (Round interim and the final answer to the nearest cent.)

A) $6.50 per machine-hour

B) $21.50 per machine-hour

C) $1.50 per machine-hour

D) $16.50 per machine-hour